The budget of today, 11th March 2020 will probably be known as the ‘Corona Budget’. That’s because as we all know it will be focussed on supporting those who the Government think will be affected by the Coronavirus outbreak and its effects on the economy.
We have outlined the key elements of today’s budget and what it could mean for your business.
Although the Bank of England announced the interest rate cut to a historic 0.25% before the Chancellor announced his budget, it was clearly done to dovetail the effects of the budget. The lowering of interest rates is designed to make it cheaper for borrowing, meaning that if you are a business who has loans or an overdraft it will cost you less to borrow.
Small businesses will be refunded the full cost of paying SSP to their staff. This applies to businesses with less than 250 staff.
Business rates will be abolished for small businesses. If you are an eligible retail, leisure or hospitality business, with a rateable value below £51,000 then you will not be required to pay rates for one year. This is worth circa £25,000 to the average small business.
The Government will set up a coronavirus business interruption loan scheme, with banks offering loans of up to £1.2 million to support small and medium sized businesses.
Eligible businesses will be able to defer their tax payments over an agreed period of time, with a dedicated helpline staffed by 2,000 workers.
To find out more if your business is eligible for the above announcements, then go to www.hmrc.gov.uk